“How do you recognize an ethical organization?” a partner of a high end law firm asked me. For some time now, I’ve been wondering about this choice of words. In in popular language, people and organizations can be ‘ethical’ and ‘unethical’. I prefer to use different words. People act good and sometimes bad. Most people are good, but we all do things we are not proud of sometimes. We can argue for a long time about where the line lies between virtuous and non-virtuous. Also about the question of who gets to decide that.
According to me, ‘ethical’ organizations do not exist. Responsible organizations do. These are organizations that, in addition to economic goals, also pursue social goals and work seriously on them. They walk their talk. Responsible organizations recognize their function or role in society. Their leaders openly discuss ethical and societal issues, both in the workplace and with stakeholders. Their leaders don’t think greed is good. Responsible organizations are organizations where doing good is an important element of the strategy process. I recognize them by the following 5 characteristics:
1 purpose
In responsible organizations people care about social or moral values. They don’t just talk about it, they show it. A responsible organization makes good, honest, reliable and sustainable products and offers ditto services and by doing so, they make the world a better place. They make profit, they are financially healthy, but they are not mere money making machines. They generate long term value for both shareholders and stakeholders.
2 pride
People who work for responsible organizations, enjoy telling other people where they work because they are proud to work there. They are proud, because they can work in accordance with their values. They can do what they believe is right.
3 trust
Management of responsible organizations is based on trust. The company culture is more important than the code of conduct. There is no need for rules written on the walls. There are no CCTV cameras to monitor people’s behaviours. Nobody does micromanagement. Employees know that they can rely on their common sense. And when in doubt, they can always consult with colleagues and their supervisor. They are not afraid to make mistakes.
4 safety
Responsible organizations provide a safe place to work. In the broadest sense of the word. The people who work there feel part of the organization. The organization is part of society. The products and processes are safe for people and the environment and the way they do business is safe for the financial markets.
5 authenticity
Managers of responsible organizations are authentic. In the stories they tell, they refer to their own experiences. People, both customers and employees, know that these stories are genuine. The leaders of these companies are accountable. They are transparent. They communicate with stakeholders. They understand the art of listening and are willing to learn. They are not afraid to talk about their mistakes.
